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Whats the deal with subs?

Discussion in 'Business Fundamentals' started by JKOOPERS, Dec 2, 2005.

  1. JKOOPERS

    JKOOPERS Senior Member
    Messages: 112

    i thought a sub contracter was someone firnished all the materials ,equipment , labor and tools to do a job . but what if you hire a sub and you load them up with your salt or icemelt . they are no longer your sub is what i have been told .
     
  2. hickslawns

    hickslawns Senior Member
    Messages: 619

    Not a lawyer, but that doesn't seem right. If a dumptruck is loaded with gravel, is he the quarry's employee? If the sub is using your plow/spreader or truck/skid loader then I would say he is your employee. Only way around that is if you have an agreement that he is leasing your piece of equipment from you. Even that might be questionable. I think if they are using your salt, then they just don't make as much as if they supplied their own. Best advice I can give you is to ask your accountant or attorney that is familiar with the tax laws/employee laws in your state.
     
  3. Stoney

    Stoney Member
    from NW OHIO
    Messages: 37

    If they use their own equipment they are a subcontractor you still furnish the materials. If they use your equipment and get hurt you are liable for their injuries. If they are using their equipment you should have your lawyer draw up subcontractor contract for them but still if their truck breaks down and you let them borrow one of yours you will still be liable contract or not.
     
  4. rockhard123

    rockhard123 Junior Member
    Messages: 5

    Sub is a sub

    Subs are someone who furnishes labor and or equipment. Who furnishes the material is not relevant. In the government eyes the sub had better carry their own insurance, pay taxes and workmen comp, other wise the government will declare them an employee and you will be responsible taxes, insurance and workmen comp. This is what my accountant has explained to me time and time again when hiring subs.
     
  5. Stoney

    Stoney Member
    from NW OHIO
    Messages: 37

    Liability wise if they use your equipment they are your employee weather you send them a w-2 or a 1099 at the end of the year. Even if you have them sign a release that they are a subcontractor it will not hold up in court if they are using your equipment and hurt themselves or someone else. The IRS will get their taxes weather you report with a w-2 or 1099. Their is two issues here tax and damage and or injury liabilty/
     
  6. clark lawn

    clark lawn PlowSite.com Addict
    from NE ohio
    Messages: 1,233

    i've subbed for someone before that had an acccount set up with local salt vendor i would just go there and buy it under their name. I was still a sub just used their material.